The new rules were approved by the Monetary Board (MB) citing complaints that banks have been charging unreasonable service charges and fees.
According to BSP Deputy Governor and officer-in-charge Amando M. Tetangco, the MB decided to issue the new rules requiring banks to be more transparent with their fees and charges as well as their dealings with depositors with inactive or dormant accounts.
Under the new rules, Tetangco said banks are no longer allowed to charge dormancy fees on accounts that meet the minimum maintaining balance (MMB).
Dormant or inactive accounts are defined as deposits showing no activity – either deposits or withdrawals – for a period of one year in case of current or checking accounts. For savings accounts, the period is two years.
According to Tetangco, banks are allowed to charge fees for dormant or inactive accounts falling below the MMB but banks are required to inform depositors by registered mail with return card at least 60 days prior to the imposition of dormancy fees.
Tetangco said banks are also limited to collecting service charges from active deposit accounts that fall below the MMB for two consecutive months only.
"Depositors will now be given 30 days from receipt of notice to express their objection to any new service or maintenance fee or any change in their terms and conditions," Tetangco pointed out.
Tetangco said the BSP issued the new rules to address numerous complaints from bank depositors who said they were not informed of the fees and charges by their banks especially when their accounts fall below the MMB or when their accounts have become inactive.
Under the new rules, Tetangco said banks would be required to notify customers of changes in the amount as well as in the terms and conditions for the imposition of the service charges and maintenance fees by mail, courier and other alternative modes of communications at least 60 days prior to the implementation of the changes.